Contract Insurance Pool: Upgraded Rules, and More Optimization for a Better Experience
2026-02-06 11:20:24
Am I Eligible for Contract Insurance?
What will be the Insurance Period and Its Effectiveness
Premium Tiers and Payout Trigger Standard
Methods to Trigger Compensation
Settlement Rules and Insurance Status
Contract Insurance Commission System
Frequently Asked Questions (FAQs)
Contract trading offers a plethora of opportunities for seasoned traders, but it also comes with grave risks associated with it. The Contract Insurance Pool is an innovative feature recently launched by BitNasdaq for its contract traders to help them manage risks effectively in highly volatile markets. BitNasdaq, the best cryptocurrency exchange platform, has revised and upgraded the rules for its Contract Insurance Pool after the completion of its trial period, refining how insurance is purchased, protection is triggered, calculated, and settled.
The new upgrade, which will be effective from February 1, 2026, is all about transparency, flexibility, and automation, making it simpler for traders to understand what it protects and what it doesn't protect. In this blog, we will go through each element of the Contract Insurance Pool upgrade, from coverage to premiums to compensation to associated risks, and what to expect from it.
Contract Insurance Pool
The contract insurance pool is a risk management feature designed specifically for users who trade in futures contracts on BitNasdaq. Users purchase insurance before opening a position to access the partial risk protection offered by the insurance, which kicks in if losses exceed a predefined threshold during the insurance period.
The insurance offers compensation in the form of BNQ hashrate instead of USDT, which is issued once and integrated into BitNasdaq's BNQ Mining Pool Hashrate system, connecting the risk management feature to the platform's mining ecosystem. However, it is also important to note that the contract insurance pool does not guarantee profits or compensation on losses. It only offers partial risk protection under specific conditions.
Am I Eligible for Contract Insurance?
Any trader on BitNasdaq who likes to trade in Futures positions is eligible for the Contract Insurance Pool once he/she has purchased it. The insurance must always be purchased before opening a contract position. Insurance cannot be purchased for already open contract positions. Likewise, if any trader wishes to purchase the insurance again, he/she must close all active positions and return the account to a zero-position state.
Contract Insurance Products
The Contract Insurance Pool applies to multiple products available on BitNasdaq:
Cryptocurrency Contracts
Bulk Contracts
Forex Contracts
Stock Contracts
Index Contracts
What will be the Insurance Period and Its Effectiveness
The insurance period only becomes effective after it’s purchased and has strict rules for its effective period:
The insurance becomes effective immediately once the premium is paid
It has a fixed validity period of 24 hours.
Once the insurance is active, all profits and losses incurred will be covered.
Profits and losses before and after the insurance period will not be included in the coverage.
BitNasdaq aims to improve the insurance pool feature with longer insurance periods in the future, depending on user feedback and system performance.
Insurance Rules You Must Know
Before purchasing insurance:
All existing contract positions must be closed
Account must be in zero-position state
In case of early settlement:
Positions are not required to close immediately
However, all positions must be closed to buy insurance again
Premium Tiers and Payout Trigger Standard
Six Insurance Premium Tiers
Users can choose from Six Insurance Premium Tiers based on their risk appetite, starting as low as 1 USDT and scaling up to 900,000 USDT, subscribing in multiples of the corresponding tier's minimum unit. All fees are paid in USDT:
1 ‒ 9 USDT
10 ‒ 99 USDT
100 ‒ 900 USDT
1,000 ‒ 9,000 USDT
10,000 ‒ 90,000 USDT
100,000 ‒ 900,000 USD
Payout Trigger Calculation
The payout trigger value is calculated using the rule:
Payout trigger value = Insurance Premium paid x 10
The payout trigger value determines if the compensation conditions are met during the insurance period.
Calculating Compensation
The Contract Insurance Pool follows a Fixed Payout Ratio Mechanism. The payout is calculated based on:
Payout Amount = (Insurance Premium x 10) x 50%
The payout follows the rules:
All payouts are issued as a one-time distribution
Payout is issued in BNQ Hashrate only.
Payouts do not include Mining Machines, which need to be purchased by the user.
Payout Hashrate is integrated into the platform's Mining Pool Hashrate system.
Contract insurance minimum premium is 1 USDT.
Methods to Trigger Compensation
In the upgraded rules for Contract Insurance Pool, compensation can be triggered in two ways:
Automatic System Trigger after 24 Hours
After the contract insurance has been active for 24 hours, if the accounts' accumulated contract loss (including realized and unrealized P&L) is equal to or greater than the trigger value (Insurance premium x 10), the system will automatically settle and issue compensation. The insurance will end naturally once the settlement is made.
Manual Early Settlement for Single Loss Trigger
In this method, within the 24 hour period of insurance, a single contract loss reaches or goes beyond the payout trigger value (Insurance premium x 10), the trader can manually apply for an early settlement. The system will issue compensation immediately on completion of settlement, and the insurance will become invalid at that point.
Existing positions do not need to be closed. The trader can continue if he likes; however, if the trader wants to purchase insurance again, he must close all contract positions first.
Settlement Rules and Insurance Status
Settlement Rules
Settlement Time
Automatic settlement after the insurance has been in effect for 24 hours
Manual settlement for early single loss conditionsSettlement Basis
The settlement price uniformly adopts Mark PriceSettlement Result Processing
One-time distribution of BNQ Hashrate, if payout conditions are met
Insurance expires, no payout generated, if payout conditions are not met
Insurance Status
The insurance moves through three stages:
Active: 24 hour period when the insurance is valid
Compensating: when losses meet or exceed trigger conditions and the system is processing
Completed: when the settlement has been made, and compensation has been issued, or the insurance period has ended without payout
Contract Insurance Commission System
The Contract Insurance Pool has been designed to incentivize user promotion and ecosystem development. With the integration of Hashrate payouts in the BNQ Mining Pool, the system works to give back into the ecosystem. The commissions are calculated solely on the actual premium paid, with no influence of profit/loss, payout outcomes or position size.
Additionally, all commissions are settled immediately in USDT so the referrers can instantly receive their earnings. The platform follows an unlimited generation, differential, same-level cutting model to ensure transparency, fairness, and scalability for promoters participating in the ecosystem.
Ordinary User - 15% Commission ratio
Node Pool / KOL - 20% Commission ratio
Hive Pool - 23% Commission ratio
Super Pool - 25% Commission ratio
Risk Reminder You Can't Miss
Risk Management Tool Positioning
Contract Insurance Pool does not promise returns or capital protection
Limitation of Coverage
Compensation follows fixed rules and does not cover all losses
Response to Extreme Circumstances
BitNasdaq reserves the right to take necessary control measures to protect system stability
Principle of Rational Participation
Users should participate in contract trading and purchase insurance based on their own risk tolerance, fully understanding the terms and conditions
Visit BitNasdaq to learn more about Contract Insurance Pool
Summary of New Rules
Payout Method Optimization
Previous rule: Compensation released over 30 days
New rule: One-time full payout
Insurance Purchase Requirement Adjustment
The mandatory requirement to repurchase insurance within 5 days has been removed
Repurchase is now entirely voluntary
Insurance Premium Payment Adjustment
Insurance premium is determined only by the premium paid before opening a position
The previous rule of deducting 10% of contract profits as insurance premium has been canceled
Commission Mechanism Upgrade (Based on Insurance Premium)
Commission rates (settled in USDT): User Level Commission Rate
Regular User 15%
Node Pool User/KOL 20%
Hive Pool User 23%
Super Pool User 25%
Unlimited levels
Differential commission system
Same-level cut mechanism
Commission is credited immediately upon insurance payment
New Feature: Early Settlement for Single Loss During Insurance Period
During the insurance validity period, if a new single loss occurs, users may choose early settlement and receive compensation
Frequently Asked Questions (FAQs)
What is Contract Insurance Pool?
The contract insurance pool is a risk management feature designed for users who trade in futures contracts on BitNasdaq.
Is it mandatory to purchase contract insurance?
No, it is not mandatory to purchase contract insurance before opening positions.
How much insurance should I purchase?
Purchase of insurance premiums depends on the trader's risk tolerance. But you can start from as low as 1 USDT.
Can I buy Contract Insurance on already open positions?
No. A trader must close all contract positions before purchasing contract insurance.
How is compensation triggered?
If accumulated losses (realized & non-realized P&L) meet or exceed the payout trigger value (Insurance premium x 10) within 24 hours of the insurance period, then you will be eligible for compensation
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